According to the Taylor rule:
A. for every 1 percentage point that unemployment exceeds the natural rate of
unemployment, there is a 2-percentage-point gap between potential and actual GDP.
B. growth in the money supply should be limited to the long-run average growth rate of real
GDP.
C. if inflation rises by 1 percentage point above its target, then the Fed should raise the real
federal funds rate by one-half a percentage point.
D. the rate of money growth should be set at 4 percent per year.
C. if inflation rises by 1 percentage point above its target, then the Fed should raise the real
federal funds rate by one-half a percentage point
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Expansionary monetary policy ________
A) lowers tax rates B) increases interest rates C) increases tax rates D) lowers interest rates
Sellers in which of the following market structures are likely to have the highest market power?
A) Monopoly B) Oligopoly C) Perfect competition D) Monopolistic competition
Assume that, for a particular demand curve, when price rises from $50 to $60, total revenue falls from $8,750 to $7800
a. Based on this information, what is the quantity demanded at each price. b. Without calculating the coefficient of elasticity, is demand over this range elastic or inelastic? How do you know?
The aggregate demand curve indicates the relationship between
a. the real wage rate and the quality of resources demanded by producers of goods and services. b. the interest rate and the amount of loanable funds demanded by borrowers. c. the natural rate of unemployment and the demand for goods and services when the economy is in long-run equilibrium. d. the general price level and the aggregate quantity of goods and services demanded.